STOCK MARKET – ARE YOU FISHERMAN OR FARMER ??? KNOW YOUR TYPE OF INVESTING

when it comes to investment in stock market, people are looking for fast gains and multiple returns, but they never follow the right path to do so. And after a mistake we use to say that market will not give gains to anyone, but is it right??? or we are on the wrong way???

Now just compare our market with real life example of FISHERMAN and FARMER.

Fisherman is a person who daily go for fishing and try his luck of daily hunting, sometimes he catch big fishes, some time there is no luck for him, and even no business for sometime.

now talk about the intraday traders, its same like a fisherman. daily we try to hunt a intraday momentum stocks, some times with decent gains, some times with loss and like this our capital get wipe out in this game.

the main reason behind this is

1. time period concern is very small

2. we cant expect a bigger and multiple gains in small time.

3. playing with the margin is always a risk

4. we missing long term growth factor in this.

5. required daily base hard work.

now talk about the FARMING BUSINESS –

FARMER plant trees, after doing a lots of hard work, and that tree started giving its output after 3-4 years, but imagine, he get same out put for next 15-20 years, without much hard work.

now here we can compare this farming with long term investment, what long term investors are doing, before investing in any stock, they do SWOT analysis of any company, they do in-depth study about the growth plans, future prospect and many fundamental things about a particular company and after that only they take a investment decision. after a investing for a long term, stock start giving gains after 2-3 years of holding and keep on giving such returns for coming years also.

why it is better to invest for long term prospect.

1. slow but steady returns

2. once the output stared then you dont need to do hard work, just seat back and relax and see your investment growing every year.

3. chances of losing is very rear, because when you think for long term investment you ignore all small up’s and downs in the stock and this can save you from booking losses.

4. time can change the luck, but if you are giving time to your luck then it can turned into bad-luck. because intrday trading is pure game of luck because of shorter time, and long term investment is value investing where your giving time for growth and according to that you get better out put in longer time.

So this is the over all difference between style of investing in market, over study indicates that, play your game with patience, and see your money working for you.

we suggest please divide your investment in 3 parts.

1. intraday – 10%

2.short – term – 30%

3. long -term – 60%

and according to above ratio’s combine your trading style with your investment, it can provide you with more chances and safely also.